Reader Letters | Taxes, taxes, taxes

Just do the job

So, Friday's front page article in the CJ describes the ways a "tax panel" recommends changing the tax code in order to solve myriad revenue problems (which are usually more aptly described as spending problems).

One of the problems needing "fixing" is the underfunded state pension system. One of the proposed "fixes" is to cut retirees' benefits by changing the way they are taxed. This is said with a straight face, when the main reason for the problem is that the legislature has been grossly negligent in meeting its obligation to fully fund, according to actuarial recommendations, that very same pension system for the majority of the past 20 years! I say with "a straight face" because the front page story was about how - again - the legislature grossly underfunded the pension plan, dropping " to new lows!"

Now, that same tax panel decided against taxing Social Security benefits - rightfully so. However, many of us in the pension system cannot collect Social Security benefits, as we paid only into the pension system. Even if we paid into Social Security at some time, we are penalized to the tune of 60 percent of what we would receive based on prior Social Security payments, because we are in the state pension system!

The taxation formula for our benefits should not be changed for the same reason Social Security benefits should not be taxed. You want to fix the system? Here's a novel idea: Do what you should have been doing for the past 20 years!

DOUG SWEENEY

Louisville 40291 -

Move beyond talking points

Let's be honest with the facts, as President Obama is not. At least The Courier-Journal should relate to the public that 80 billion from taxing those over $250,000 will only last the government two to three weeks. It will do nothing in the face of absent spending cuts for the nation. The three percent of small business that Obama seems to think is less important in this equation represents 70-plus million employees in this country. If that three percent of business sustains increased taxes, there will be jobs lost or full-time changing to part-time. It should be one of the mission statements of our media to inform the public, as this is not being done through Washington. Your editorials and innuendos about the upper one percent are simply talking points of the liberal left and make no economic sense.

E. EGGERS

Louisville 40222 -

It's a start

While Congress debates the income tax marginal rates for our wealthiest citizens, I propose a 100 percent income tax rate on amounts of exactly $174,000, $193,400, and $223,500. Those amounts are the basic salary of House and Senate members, leadership positions, and the Speaker of the House. The real question for accountants would be if this is truly earned income or long-term unearned income, and possibly only subject to current 15 percent capital gains tax. This "meager" proposal would only bring in $93 million per year, or less than $1 billion for 10 years - far less than needed to eliminate the national debt, but it's a start on eliminating Washington waste and abuse.

If having these defined intermediate amounts for special tax treatment as part of a progressive income tax system seems strange, there is a precedent. Just ask any Medicare recipient about the prescription "doughnut hole."

MICHAEL AUSLANDER

Louisville 40220 -

Taxing pensions

One of the reasons, I retired in Kentucky is the current $41,110 pension exemption from state income tax. If the proposal to limit the exemption to $30,000 and tax pension income above $30,000 dollar for dollar becomes part of Kentucky's tax code, my state income tax will rise about $1,200. A very big increase for a retiree. There are many states that are retiree pension tax friendly (Tennessee is one) Relocation to these states will become a viable option for many retirees including me.

FRANK E. ROTH

Louisville 40014 -

Louisville, Kentucky • Southern Indiana

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Reader Letters | Taxes, taxes, taxes

So, Friday's front page article in the CJ describes the ways a 'tax panel' recommends changing the tax code in order to solve myriad revenue problems (which are usually more aptly described as